Rate at 1%: new record for outstanding amounts on the Livret A

The Livret A and its twin brother, the Livret de développement durable et solidaire (LDDS), experienced positive net inflows in January. For these two investments, it amounts to 6.8 billion euros, which allows them to display an overall outstanding amount never reached before of 476.5 billion euros (respectively, these piggy banks display 349.6 and 126 .8 billion euros, a record in both cases).

Holders of these regulated savings accounts have paid much more money than usual due in particular to health restrictions and an extremely high equity market, not conducive to entries. Mostly, “it benefited from the announcement effect of the increase in its rate”, says Philippe Crevel, director of the Circle of savings. Remuneration has thus increased to 1% per year since February 1, whereas it previously amounted to 0.5%.

But other, more traditional factors come into play:“The month of January is traditionally a buoyant month for the Livret Aexplains Philippe Crevel. Households allocate part of their end-of-year or 13th month bonuses to it. The month of January is also marked by the payment of part of the reductions and tax credits due by the State in respect of income tax. 8.7 million tax households received, as of January 17, 5.3 billion euros in reductions and tax credits in respect of their 2021 income.

With the new international tensions in Ukraine and the possibility of a tightening of American rates, savers will still be encouraged at the start of the year to choose this secure investment, the preferred destination for precautionary savings, as had been the case at the heart of the Covid crisis.